BILL NUMBER: AB 1660	CHAPTERED  07/12/99

	CHAPTER   85
	FILED WITH SECRETARY OF STATE   JULY 12, 1999
	APPROVED BY GOVERNOR   JULY 12, 1999
	PASSED THE ASSEMBLY   JUNE 16, 1999
	PASSED THE SENATE   JUNE 15, 1999
	AMENDED IN SENATE   JUNE 15, 1999
	AMENDED IN ASSEMBLY   MAY 25, 1999
	AMENDED IN ASSEMBLY   MAY 18, 1999

INTRODUCED BY   Assembly Members Shelley and Senators Murray and
Hayden

                        MARCH 11, 1999

   An act to amend Section 12967 of the Insurance Code, and to amend
Section 42205 of, and to add and repeal Section 42271.5 of, the
Vehicle Code, relating to state government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1660, Shelley.   State government.
   (1) Existing law requires the Department of Insurance to develop
and implement a coordinated approach to gather, review, and analyze
the archives of affected insurance groups, and other archives and
records, using onsite teams and an oversight committee, to provide
for research and investigation into insurance policies, unpaid
insurance claims, and related matters of victims of the Holocaust or
of the Nazi-controlled German government or its allies, and the
beneficiaries and heirs of those victims, and for losses arising from
the activities of the Nazi-controlled German government or its
allies for insurance policies issued before and during World War II
by insurers who have affiliates or subsidiaries authorized to do
business in California.
   This bill would rename the oversight committee the Holocaust Era
Insurance Claims Oversight Committee (hereafter the oversight
committee).  The bill would provide for the appointment of 7 persons
to the oversight committee, 4 by the Governor, and one each by the
President pro Tempore of the Senate, the Speaker of the Assembly and
the Commissioner of Insurance.  The bill would add to the duties of
the oversight committee with respect to specified activities
regarding Holocaust era insurance claims in which the department is
involved.
   (2) Existing law limits expenditure of the funds in the Motor
Vehicle Account in the State Transportation Fund to specific purposes
relating to the administration and enforcement of laws regulating
the use, operation, or registration of vehicles operated on the
highways.  Those funds may also be used for certain highway and mass
transit guideway purposes.
   This bill, until June 30, 2000, or until the day after execution
of the transfers specified below, whichever date is first, would
authorize money in the account that is derived from specified revenue
resources to be used for any general governmental purpose, upon
appropriation.
   The bill would require the Controller to transfer prescribed sums
from the State Highway Account to the General Fund and the Motor
Vehicle Account upon the determination that certain conditions have
occurred.  The bill would also require the Controller to transfer a
prescribed sum from the Motor Vehicle Account to the General Fund
upon determining that certain other conditions have occurred.
   (3) Under federal law, the Secretary of Commerce is required to
take a decennial census of population, as defined as population and
housing, and matters relating to population and housing, every 10
years.
   This bill would establish the California Complete Count Committee
for the purpose of developing and implementing a plan to maximize the
number of persons of this state that participate in the 2000 federal
decennial census of population.  The committee would consist of 9
members, to be appointed as specified.  The committee would be
authorized to enter into contracts with individuals or entities as
necessary for the development or implementation of the plan.  The
committee would be required to implement the plan no later than
February 15, 2000, and to continue to implement the plan through
September 1, 2000.  The committee would cease to exist on December
31, 2000.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 12967 of the Insurance Code is amended to read:

   12967.  (a) (1) The department shall develop and implement a
coordinated approach to gather, review, and analyze the archives of
insurers and other archives and records, using onsite teams and the
oversight committee, to provide for research and investigation into
insurance policies, unpaid insurance claims, and related matters of
victims of the Holocaust or of the Nazi-controlled German government
or its allies, and the beneficiaries and heirs of those victims, and
for losses arising from the activities of the Nazi-controlled German
government or its allies for insurance policies issued before and
during World War II by insurers who have affiliates or subsidiaries
authorized to do business in California.  Information compiled shall
be placed in a centralized data base for the retention of policy and
claimant data, and the data shall be used to implement this section
and Section 790.15.
   (2) The department has an affirmative duty to play an independent
role in representing the interests of Holocaust survivors where
necessary, including the duty to carry out research, investigations,
and advocacy.  The department shall cooperate with, participate in,
promote coordination with, and to the extent feasible and consistent
with the purposes of this section, work jointly with the National
Association of Insurance Commissioners and the international
commission on Holocaust survivor claims or any other entity involved
in the documentation, resolution, settlement, or distribution of
insurance claims, including the documentation of unpaid claims and
the distribution of proceeds, and the establishment and maintenance
of a data base to contain information relevant to claimants and
documents and historical information.  The department shall work to
recover information and records that will strengthen the claims of
California residents.
   (3) The department shall employ insurance archaeologists,
economists, attorneys, accountants, and other specialists, in this
country and in Europe, to implement this section.  The department
shall work jointly with the National Association of Insurance
Commissioners and other organizations for this purpose.  The
department's cooperation with other states shall be for the purpose
of advancing survivors' claims while avoiding duplication of efforts,
and shall be dependent upon contributions by other states.
   (4) In order to assure that Holocaust survivors receive the most
aggressive and independent representation possible in pursuit of
their historic claims, in contracting with accounting firms, law
firms, economists, or others to implement this section, the
department shall, to the maximum extent possible, avoid any potential
or actual conflict of interest by doing the following:
   (A) Seek and give preference to firms that are entirely free of
any associations with firms representing insurers and nations from
which Holocaust survivors are seeking just treatment of their claims.

   (B) If the department finds that is necessary to contract with a
firm or firms that have conflicts or potential conflicts of interest,
those conflicts or potential conflicts of interest shall be
disclosed to the commissioner, and the following requirements shall
apply:
   (i) The contract shall contain a provision that expresses a formal
commitment on the part of the firm to aggressively pursue a maximum
just settlement for Holocaust survivors and their families without
regard to any adverse impacts on insurers, affiliates of insurers,
nations, or others that may have employed the firm or affiliates of
the firm that is contracting with the commissioner to assist in
carrying out the commissioner's responsibilities under this section.

   (ii) If any conflict or potential conflict exists between the
firm, or an affiliate of the firm, and an insurer, an affiliate of an
insurer, a nation or others directly or indirectly involving
Holocaust claims, the firm shall disclose both the fact of the
conflict or potential conflict, and all relevant information
describing the nature of the conflict or potential conflict.
   (iii) If a conflict or potential conflict exists between the firm,
or an affiliate of the firm, and an insurer, an affiliate of an
insurer, a nation, or others that does not directly or indirectly
involve Holocaust claims, the firm shall disclose the fact of the
conflict or potential conflict and identify the source of the
conflict or potential conflict, but need not describe the particular
circumstances or facts that create the conflict or potential
conflict.
   (C) The department may take whatever special measures it deems
necessary to avoid either the appearance or the reality of conflicts
that may undermine public confidence in the integrity of the effort
to secure justice for Holocaust survivors.
   (b) The funding of the activities provided for by this section for
the 1998-99 fiscal year shall be from funds transferred pursuant to
subdivision (b) of Section 1523 of the Code of Civil Procedure, which
funds are hereby appropriated to the commissioner for that purpose.
The commissioner shall seek reimbursement of those funds as provided
in subdivision (c).
   Funding for subsequent fiscal years shall be subject to the Budget
Act and based on a plan submitted by the commissioner to the
Legislature outlining the plan for reimbursement of expenses of the
department by affected insurers.
   Funds made available to implement this section shall be used to
develop and implement a coordinated approach to gather, review, and
analyze the archives of affected insurance groups, and other archives
and records, using onsite teams and the oversight committee. These
funds shall also be used to fund the necessary expenses of the
Holocaust Era Insurance Claims Oversight Committee established in
subdivision (d).  The information compiled shall be placed in a
centralized data base for the retention of policy and claimant data,
and that data shall be used by the department to implement this
section.
   (c) (1) Any funds recovered by the department for the purpose of
reimbursing the state for costs associated with investigation and
enforcement actions under this section shall not be deposited in the
Insurance Fund, but instead shall be delivered to the Controller for
deposit into the General Fund.
   (2) To the maximum extent possible, the department shall seek
reimbursement for its costs incurred in implementing this section,
including funds transferred pursuant to subdivision (b) of Section
1523 of the Code of Civil Procedure, from any settlements reached
with affected insurers.
   (d) (1) There is established a seven-member Holocaust Era
Insurance Claims Oversight Committee, that shall be known as the
oversight committee, and whose members shall be appointed as follows:

   (A) Four members shall be appointed by the Governor.
   (B) One member shall be appointed by the President pro Tempore of
the Senate.
   (C) One member shall be appointed by the Speaker of the Assembly.

   (D) One member shall be appointed by the Commissioner of
Insurance.
   (2) The Governor shall designate one of his or her appointees as
the chairperson of the committee.
   (3) Each member of the committee shall serve at the pleasure of
the authority that appointed him or her to serve on the committee.
   (4) The oversight committee shall be composed of qualified
individuals with experience in Holocaust claims cases, similar
investigations, archival research, and international law.  The
oversight committee shall also include Holocaust survivors.  No
member of the oversight committee shall have a potential or actual
conflict of interest, or shall be employed by a person who has a
potential or actual conflict of interest.
   (5) The appointments shall be expedited because of the urgency due
to survivors' needs.
   (6) The oversight committee shall have the following authority and
shall do all of the following:
   (A) Review and make recommendations concerning any insurance
settlement negotiation or offer relating to a Holocaust era insurance
claim in which the department is involved.
   (B) Review and make recommendations to the commissioner on the
priorities for expenditure of funds and use of resources by the
department for Holocaust era insurance claims related activities.
   (C) Recommend whether a proposed settlement of a Holocaust era
insurance claim submitted to the committee pursuant to paragraph (7)
is equitable before the department finalizes the settlement
agreement.
   (7) The commissioner, in the event of a proposed settlement of any
policy or group of policies relating to Holocaust era insurance
claims, shall confer with the committee prior to the department
finalizing the settlement agreement.  The department may not finalize
a proposed settlement of a Holocaust era insurance claim unless the
committee, pursuant to subparagraph (C) of paragraph (6), recommends
that the proposed settlement is equitable.
   (e)  The department shall report its progress in implementing this
section and its participation in the identification and resolution
of insurance claims of Holocaust survivors and their beneficiaries
and heirs.  The report shall also include an overview of current and
anticipated expenditures in implementing this section.  The
department shall make this report biannually to the insurance and
budget committees of the Legislature.
  SEC. 2.  Section 42205 of the Vehicle Code is amended to read:
   42205.  (a) Notwithstanding Chapter 3 (commencing with Section
42270), the department shall file, at least monthly with the
Controller, a report of money received by the department pursuant to
Section 9400 for the previous month and shall, at the same time,
remit all money so reported to the Treasurer.  On order of the
Controller, the Treasurer shall deposit all money so remitted into
the State Highway Account in the State Transportation Fund.
   (b) The Legislature shall appropriate from the State Highway
Account in the State Transportation Fund to the department and the
Franchise Tax Board amounts equal to the costs incurred by each in
performing their duties pursuant to Article 3 (commencing with
Section 9400) of Chapter 6 of Division 3.  The applicable amounts
shall be determined so that the appropriate costs for registration
and weight fee collection activities are appropriated between the
recipients of revenues in proportion to the revenues received
individually by those recipients.  The remainder of the funds
collected under Section 9400 and deposited in the account may be
appropriated to the Department of Transportation, the Department of
the California Highway Patrol, and the Department of Motor Vehicles
for the purposes authorized under Section 2 of Article XIX of the
California Constitution.
  SEC. 3.  Section 42271.5 is added to the Vehicle Code, to read:
   42271.5.  Notwithstanding Section 42271, the funds deposited in
the Motor Vehicle Account in the State Transportation Fund that are
derived from the sale of identification cards, documents, and other
information may be used for any general governmental purpose, upon
appropriation by the Legislature.
  SEC. 4.  (a) The Legislature hereby finds and declares that the sum
of thirty million six hundred eighty-two thousand dollars
($30,682,000) is equal to the amount that was collected by the
Department of Transportation from property rentals during the 1993-94
fiscal year.
   (b) Notwithstanding Sections 182 and 183 of the Streets and
Highways Code, upon determining that a court has rendered a final
decision on the merits which holds that the transfer made under Item
2660-011-942 of Section 2.00 of the Budget Act of 1993 is invalid and
orders that those funds be transferred from the General Fund to the
State Highway Account in the State Transportation Fund, and upon
determining that there has been compliance with that court order, the
Controller shall transfer from the State Highway Account in the
State Transportation Fund to the General Fund the sum of thirty
million six hundred eighty-two thousand dollars ($30,682,000), plus
any interest awarded by the court and the interest that accrued to
that sum from the date of compliance with the court's order to the
effective date of the transfer required under this section.  The sum
transferred under this subdivision shall be from funds in the State
Highway Account that are not subject to Article XIX of the California
Constitution.
  SEC. 5.  (a) Upon determining that a court has rendered a final
decision on the merits which holds that the transfer made under Item
2660-013-042 of Section 2.00 of the Budget Act of 1993 is invalid and
orders that those funds be transferred from the Motor Vehicle
Account in the State Transportation Fund to the State Highway Account
in that fund, and upon determining that there has been compliance
with that court order, the Controller shall transfer from the State
Highway Account in the State Transportation Fund to the Motor Vehicle
Account in that fund the sum of one hundred thirty million dollars
($130,000,000), plus any interest awarded by the court and the
interest that accrued to that sum from the date of compliance with
the court's order to the effective date of the transfer required
under this section.
   (b) The funds transferred by the Controller pursuant to
subdivision (a) shall be available, upon appropriation, for support
of the Department of the California Highway Patrol.
  SEC. 6.  (a) The Legislature hereby finds and declares that the sum
of one hundred thirty-one million one hundred ninety-five thousand
dollars ($131,195,000) is equal to the amount that was collected by
the Department of Motor Vehicles from fees imposed for the sale of
identity cards and information during the 1993-94, 1994-95, and
1995-96 fiscal years.
   (b) Upon determining that a court has rendered a final decision on
the merits which holds that the transfers made under Item
2740-021-044 of Section 2.00 of the Budget Acts of 1993, 1994, and
1995 are invalid and orders that those funds be transferred from the
General Fund to the Motor Vehicle Account in the State Transportation
Fund, and upon determining that there has been compliance with that
court order, the Controller shall transfer from the Motor Vehicle
Account in the State Transportation Fund to the General Fund the sum
of one hundred thirty-one million one hundred ninety-five thousand
dollars ($131,195,000), plus any interest awarded by the court and
the interest that accrued to the amounts transferred under Item
2740-021-044 of Section 2.00 of the Budget Acts of 1993, 1994, and
1995 from the date of compliance with the court's order to the
effective date of the transfer required under this section.  The sum
transferred under this subdivision shall be from funds in the Motor
Vehicle Account that are not subject to Article XIX of the California
Constitution.
  SEC. 7.  Sections 3 to 6, inclusive, of this act shall be repealed
on June 30, 2000, or on the day following the execution of the
transfers required under Sections 4, 5, and 6 of this act, whichever
date is first.
  SEC. 8.  (a) The Legislature finds and declares that more than
843,000 Californians were missed by the 1990 federal decennial census
of population and that undercount resulted in the loss of $2.2
billion in federal funds that would have been received by the state
on the basis of population.
   (b) It is the intent of the Legislature that the state take
aggressive steps to increase participation in the 2000 federal
decennial census of population.  It is further the intent of the
Legislature to increase participation in the federal census through
an intensive, short-term outreach program to those groups that have
been undercounted in the past.
  SEC. 9.  (a) The California Complete Count Committee is hereby
established for the purpose of developing and implementing a plan to
maximize the number of persons of this state that participate in the
2000 federal decennial census of population required by Section 141
of Title 13 of the United States Code through an intensive,
short-term outreach program to those groups that have been
undercounted in the past.
   (b) The committee shall have nine members, to be appointed as
follows:
   (1) Two members appointed by the Governor who are from
community-based organizations that serve groups that were
undercounted in the 1990 federal decennial census of population.
   (2) One member appointed by the Governor who is an official of the
county that sustained the largest undercount in the 1990 federal
decennial census of population.
   (3) One member appointed by the Governor who is a representative
of the school district with the most pupils who qualify for free and
reduced price meals pursuant to the National School Lunch Act, as
amended (42 U.S.C. Sec. 1751 and following).
   (4) One member appointed by the Governor who is a representative
of a state agency that has clients who are members of the groups that
were undercounted in the 1990 federal decennial census of
population.
   (5) One member appointed by the President pro Tempore of the
Senate.
   (6) One member appointed by the Speaker of the Assembly.
   (7) One member appointed by the Lieutenant Governor.  The
Lieutenant Governor shall also be a member of the committee and shall
serve as the chairperson of the committee.
   (c) The committee may enter into contracts with individuals or
entities as necessary for the implementation or development of the
plan.
   (d) Motions considered by the committee shall be approved upon a
vote of a majority of those members who are present and voting.
   (e) The committee shall implement the plan no later than February
15, 2000, and shall continue to implement the plan through September
1, 2000.  The committee shall cease to exist on December 31, 2000.
